Airline Business Process Optimization

Goran.Stojkovic@jeppesen.com

Copyright (c) 2009 Jeppesen

Jeppesen.com
Presentation Plan

• Introduction
• Research
• Application
• Case Study 1
• Case Study 2
• Summary

Copyright (c) 2009 Jeppesen 2

Introduction

Copyright (c) 2009 Jeppesen 3

 How All These Happened

• Visited/met several airlines worldwide

• Performed an extensive research of airline business

processes

• Developed template business process model

• Developed methodology to analyze and streamline

business processes by providing business, system and
data views

• Applied acquired knowledge at several airlines

Copyright (c) 2009 Jeppesen 4

Research

Copyright (c) 2009 Jeppesen 5

 Methodology

• Developed methodology to captures airline’s business

processes allowing to understand:
– How an airline works,
– Who is involved,
– How activities flow from beginning to end.

Copyright (c) 2009 Jeppesen 6

 Metrics

• Developed structured set of metrics allows:

– Comparison of alternatives and identification of best practices
– Focusing on global value rather than on value by silo is crucial in
showing the added value
Delay propagation
300
Schedule Deviation Metrics

250 Recovery
Time
Delayed
200 Flights
Delay
150 Time
Overlap 1
Time
100
Delay &
0.9 (0.50, 0.40, 0.70) 1 * (1.00, 1.00, 1.00)
Overlap 0.8 5
(1.00, 0.80, 0.88)
50 0.7 R
(0.60, 0.60, 0.60)
0.6
0 0.5
10 20 30 40 50 60 70 80 90 0.4
0.2
Initial Delay Time 0.3
0.2 0.4

0.1 0.6
0
0.8
0.2
0.4 1
0.6
0.8
Copyright (c) 2009 Jeppesen 1 7
 Combined

• Combination enables:
– Better transparency
– Bottleneck identification
– Processes streamline
– Identification and validation of optimization opportunities

Copyright (c) 2009 Jeppesen 8

Application

Copyright (c) 2009 Jeppesen 9

 Current Work

• Focus on implementation of developed methodology by

customizing templates to the actual airline processes

• Providing system, data and decision flow views within

existing business process model

• Identifying process optimization opportunities and

providing best practices

• Two case studies showing results obtained at two mid-

size airlines with large international networks, one with
scheduled and other with ad-hoc operations

• Deliverable includes:
– As-Is process models
– To-Be process models
Copyright (c) 2009 Jeppesen 10
Case Study 1

Copyright (c) 2009 Jeppesen 11

 Airline Business Processes

Flight
Scheduling

Fleet
Scheduling

Crew Planning & Transition &

Maintenance Operations
Scheduling Coordination

Revenue
Management

Maintenance
Scheduling

Copyright (c) 2009 Jeppesen 12

 AS-IS Planning Process Model

Flight Initial Plan Final Plan

Scheduling plan maintenance plan maintenance

Fleet Initial Plan Plan Plan Manual Plan

Scheduling plan maintenance reoptimization maintenance adjustments maintenance

Crew Roster
Pairing Rostering
Scheduling maintenance

Revenue Reservations
Management

Maintenance Initial Plan

Scheduling plan maintenance

Copyright (c) 2009 Jeppesen 13

 TO-BE Planning Process Model

Flight Initial Plan Final Plan

Scheduling plan maintenance plan maintenance

Fleet Initial Plan maintenance &

Scheduling plan reoptimization

Crew Roster
Pairing Rostering
Scheduling maintenance

Revenue Reservations
Management

Maintenance Initial Plan

Scheduling plan maintenance

Copyright (c) 2009 Jeppesen 14

 AS-IS Transition Process
System View
Planning Data transfer Operations Reservations

Tail Tail assignments Tail assignments Aircraft

Validation
Assignment Recovery
data exchange

Aircraft/ crew

Movement
connections

Control

Crew
Tracking

Crew
Pairing Tail assignments Bookings
Transition Passenger Reservation
Recovery Reroutes System
pairings
Crew

EDS
Flight Dispatch

Crew
Rostering

Copyright (c) 2009 Jeppesen 15

 TO-BE Transition Process
System View
Planning Data transfer Operations Reservations
Planning Data Operational Data

Tail Aircraft
Assignment Recovery

Tail Assignments
Movement
Control

Crew
Crew Tracking
Pairing

Bookings
Crew Rosters Passenger Reservation
Recovery Reroutes System

EDS
Flight Dispatch
Crew
Rostering

Copyright (c) 2009 Jeppesen 16

 AS-IS Operations Process Model

Flight Flight
planning &
Dispatch monitoring

Flight Flight
Flight updates
Scheduling history
Aircraft
recovery
Aircraft Fleet
Tail updates
Tracking history

Pax Booking Pax

Reservation updates
Rerouting history recovery

Crew Crew Crew

Crew updates
Tracking history recovery

Maintenance Maintenance Maintenance Maintenance updates

Management history recovery
Copyright (c) 2009 Jeppesen 17
 TO-BE Operations Process Model

Flight
Flight
planning &
Dispatch monitoring

Flight
Scheduling

Aircraft Aircraft &

passenger
Tracking recovery
Operations
Future operation updates
history
Pax
Rerouting

Crew Crew
Tracking recovery

Maintenance Maintenance Maintenance Maintenance updates

Management history recovery
Copyright (c) 2009 Jeppesen 18
Case Study 2

Copyright (c) 2009 Jeppesen 19

 Airline Business Processes

Sales

Flight
Scheduling

Customer Planning &

Fleet Services Operations
Maintenance
Scheduling

Crew
Scheduling

Copyright (c) 2009 Jeppesen 20

 AS-IS Planning Process Model

Sales Flight Flight Account

request acceptance management

Flight Feasibility
Scheduling Check

Fleet Fleet Plan

Scheduling assignment maintenance

Crew Crew Roster

Scheduling assignment maintenance

Copyright (c) 2009 Jeppesen 21

 TO-BE Planning Process Model

Sales Flight Flight Account

request acceptance management

Flight
Scheduling

Fleet &
Fleet Plan maintenance
Crew
& reoptimization
Scheduling assignment

Crew
Scheduling

Copyright (c) 2009 Jeppesen 22

 AS-IS Operations Process Model

Flight
Flight
planning &
Dispatch monitoring

Flight Flight Feasibility Schedule

Flight updates
Scheduling history Check tracking

Aircraft Fleet Fleet Aircraft

Tail updates
Tracking history assignment tracking

Crew Crew Crew Crew

tracking Crew updates
Tracking history assignment

Sales Booking Flight Flight Pax

tracking Passenger updates
history request acceptance

Copyright (c) 2009 Jeppesen 23

 TO-BE Operations Process Model

Flight
Flight
planning &
Dispatch monitoring

Flight Flight
Scheduling history
Aircraft
recovery

Aircraft Fleet Future operations updates

Tracking history

Crew Crew Crew

Tracking history recovery

Sales Booking Flight Passenger

Passenger updates
history request tracking & recovery

Copyright (c) 2009 Jeppesen 24

 Summary

• Existing processes and IT infrastructure significantly

streamlined

• Permits growth without increase in business and IT staff

• Existing processes are supported, additional benefits

possible if ready to change them

• Cost/benefit analysis of process changes is enabled

• Shortened planning processes and flexibility for future

business model changes

• Facilitates demand driven operations

Copyright (c) 2009 Jeppesen 25
 Summary (cont.)

• Allows profit centric operations - at each moment it is

possible to see cost/revenue effects of using certain
tail/crew, rerouting passengers and diverting flights

• Set of KPIs available to evaluate consequences for each

affected area as well as to find pareto efficient solution

• Initial findings show response time and solution quality

improvement

Copyright (c) 2009 Jeppesen 26